Chile Peso Rises First Time This Week as China Manufacturing Boosts Copper

Sep 2 (Bloomberg)--
 

Chile’s peso climbed to the highest level against the U.S. dollar in seven months as faster-than- estimated manufacturing growth in the U.S. and China improved the outlook for raw material exports.

The peso appreciated 1.2 percent to 496.85 per dollar from 502.75 yesterday. A 3.7 percent increase in August was the best performance among 25 emerging market currencies tracked by Bloomberg.

Chile’s currency rebounded from two days of losses as copper, the country’s main export, rallied in New York and London after the Chinese purchasing managers’ index rose to 51.7 from 51.2, exceeding forecasts, and Australia’s economy expanded a faster-than-estimated 1.2 percent in the second quarter. The MSCI World Index of stocks rallied 2.8 percent after the Institute for Supply Management’s gauge of U.S. manufacturing unexpectedly rose to 56.3 from 55.5 a month earlier.

"The manufacturing data from China and GDP from Australia are giving a boost to commodities and bourses, and all currencies are appreciating,” said Eugenio Cortes, head of currency forwards at EuroAmerica Corredores de Bolsa SA in Santiago. “Chile shouldn’t be the exception.”

Copper for delivery in December gained 3.3 percent to $3.481 a pound on the Comex in New York. Copper for delivery in three months rose 2.2 percent to $7,606 a metric ton on the London Metal Exchange.